High-end, prebuilt space draws fledgling fund

Palestra Capital Management, a global equity fund, will be the first tenant in the new prebuilt offices at 1330 Sixth Ave.

The fund, which received capital from firms related to Goldman Sachs Group Inc. and TPG Capital, leased 5,000 square feet, or roughly half the 21st floor. Asking rent for the five-year deal at the 40-story, 534,000-square-foot building between West 53rd and West 54th streets, was between $95 and $100 a square foot.

Palestra’s management selected the space because it liked the building’s location and the fact that the tower’s new owner is constructing high-end space, according to the firm’s broker, Dan Madison of Newmark Knight Frank. The recently formed fund is currently in temporary space in the tower and should move to its permanent home in the next two months.

The office is one of seven pre-built suites landlord RXR Realty is constructing to appeal to boutique financial firms. All should be completed by the spring.

“This is what the market wants,” said William Elder, executive vice president and managing director of the New York City division of RXR. He said there hasn’t been a material slowdown in such firms looking for space but those out in the market want their offices built for them. He added that although there is additional vacant space in the building where more offices could be prebuilt, RXR will wait until the end of the year to make that decision.

“The market may change, and we don’t want to use all the inventory,” he said.